UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 29, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to ____________
Commission file number: 0-19217
American Tax Credit Properties III L.P.
(Exact name of Registrant as specified in its charter)
Delaware
13-3545006
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
Richman Tax Credit Properties III L.P.
599 West Putnam Avenue, 3rd Floor
Greenwich, Connecticut
06830
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (203) 869-
0900
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to filing
requirements for the past 90 days.
Yes X No ___.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
PART I - FINANCIAL INFORMATION.
Item 1. Financial Statements.
Table of Contents Page
Balance Sheets as of June 29, 1996 (Unaudited) and March 30, 1996
(Unaudited)
Statements of Operations for the three month periods ended June
29, 1996 (Unaudited)
and June 29, 1995 (Unaudited)
Statements of Cash Flows for the three month periods ended
June 29, 1996 (Unaudited) and June 29, 1995 (Unaudited)
Notes to Financial Statements as of June 29, 1996 (Unaudited)
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT PROPERTIES III L.P.
BALANCE SHEETS
JUNE 29, 1996 AND MARCH 30, 1996
(UNAUDITED)
June 29, March 30,
Notes 1996 199
6
<S> <C> <C> <C>
ASSETS
Cash and cash equivalents $ 375,349 $ 389,931
Restricted cash 3 1,102,327 1,102,327
Investments in bonds available-for- 2 3,034,146 3,070,375
sale
Investment in Local Partnerships 3 12,582,367 13,241,594
Interest receivable 40,265 28,008
$17,134,454 $17,832,235
LIABILITIES AND PARTNERS' EQUITY
(DEFICIT)
Liabilities:
Accounts payable and accrued $ $
expenses 738,756 717,878
Payable to General Partner 702,115 669,472
Capital contributions payable 3 1,102,327 1,102,327
Other
21,200 25,950
2,564,398 2,515,627
Partners' equity (deficit):
General Partner (168,100) (161,180)
Limited Partners, $1,000 stated value
per unit (35,883 Units of Limited 14,887,829 15,572,895
Partnership Interest outstanding)
Unrealized loss on investments in
bonds available-for-sale, net 2 (149, (95
673) ,107)
14,570,0 15,316,6
56 08
$17,134, $17,832,
454 235
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT PROPERTIES III L.P.
STATEMENTS OF OPERATIONS
THREE MONTH PERIODS ENDED JUNE 29, 1996 AND 1995
(UNAUDITED)
Note 1996 1995
s
<S> <C> <C> <C>
REVENUE
Interest $ 78 $ 95
,436 ,552
TOTAL REVENUE 78, 95,
436 552
EXPENSES
Administration fees 57,643 57,643
Management fees 57,643 57,643
Professional fees 8,202 12,612
Printing, postage and other 7,929 6,830
Amortization 3
,125
TOTAL EXPENSES 131,4 137,8
17 53
Loss from operations (52,981) (42,301)
Equity in loss of Investment 3 (639,0 (875,3
in Local Partnerships 05) 51)
NET LOSS $ (691, $ (917,
986) 652)
NET LOSS ATTRIBUTABLE TO
General Partner $ ( $ (
6,920) 9,177)
Limited Partners (685,0 (908,4
66) 75)
$ (691, $ (917,
986) 652)
NET LOSS per Unit of Limited
Partnership Interest (35,883 $ ( $ (
Units of Limited Partnership 19.09) 25.32)
Interest)
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT PROPERTIES III L.P.
STATEMENTS OF CASH FLOWS
THREE MONTH PERIODS ENDED JUNE 29, 1996 AND 1995
(UNAUDITED)
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received $ 47, $ 58,
842 672
Cash used for Local Partnerships for (4,750)
deferred expenses
Cash paid for:
administration fees (25,000) (25,000)
management fees (25,000) (25,000)
professional fees (23,721) (5,112)
printing, postage and other expenses (4, (1,19
175) 1)
Net cash provided by (used in) operating (34,8 2,3
activities 04) 69
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in Local Partnership (300,000
)
Transfer from restricted cash 300,000
Cash distributions from Local 20,2 12,4
Partnerships 22 15
Net cash provided by investing activities 20,2 12,4
22 15
Net increase (decrease) in cash and cash (14,582) 14,784
equivalents
Cash and cash equivalents at beginning of 389,93 663,90
period 1 5
CASH AND CASH EQUIVALENTS AT END OF $ 375,3 $ 678,6
PERIOD 49 89
SIGNIFICANT NON-CASH INVESTING ACTIVITIES
Unrealized gain (loss) on investments in $ (54, $ 178,
bonds available-for-sale, net 566) 092
</TABLE>
See reconciliation of net loss to net cash provided by (used in)
operating activities on the following page.
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT PROPERTIES III L.P.
STATEMENTS OF CASH FLOWS - (Continued)
THREE MONTH PERIODS ENDED JUNE 29, 1996 AND 1995
(UNAUDITED)
1996 1995
<S> <C> <C>
RECONCILIATION OF NET LOSS TO NET CASH
PROVIDED BY (USED IN) OPERATING
ACTIVITIES
NET LOSS $ (691,9 $ (917,652
86) )
ADJUSTMENTS TO RECONCILE NET LOSS TO
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Equity in loss of Investment in Local 639,005 875,351
Partnerships
Amortization of organization costs 3,125
Amortization of net premium on 3,727 5,662
investment in bonds
Accretion of zero coupon bonds (22,064) (19,856)
Increase in interest receivable (12,257) (22,686)
Increase in payable to General Partner 32,643 32,643
Increase in accounts payable and 20,878 45,782
accrued expenses
Decrease in other liabilities (4,
750)
Total adjustments 657,1 920,021
82
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES $ (34, $ 2,3
804) 69
</TABLE>
See Notes to Financial Statements.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
NOTES TO FINANCIAL STATEMENTS
JUNE 29, 1996
(UNAUDITED)
1.Basis of Presentation
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information. They do not include all information and
footnotes required by generally accepted accounting principles for
complete financial statements. The results of operations are
impacted significantly by the combined results of operations of the
Local Partnerships, which are provided by the Local Partnerships on
an unaudited basis during interim periods. Accordingly, the
accompanying financial statements are dependent on such unaudited
information. In the opinion of the General Partner, the financial
statements include all adjustments necessary to present fairly the
financial position as of June 29, 1996 and the results of operations
and cash flows for the interim periods presented. All adjustments
are of a normal recurring nature. The results of operations for the
three month period ended June 29, 1996 are not necessarily
indicative of the results that may be expected for the entire year.
Certain reclassifications of amounts have been made to conform to the
current period presentation.
2.Investments in Bonds Available-For-Sale
As of June 29, 1996, certain information concerning investments in
bonds available-for-sale is as follows:
<TABLE>
<CAPTION>
Gross Gross Estimat
Amortize unrealiz unrealiz ed
d ed ed fair
co gain loss va
st s es lue
<S> <C> <C> <C> <C>
Description and
maturity
Corporate debt
securities:
Within one year $ 20 $ $ (1 $ 200
1,946 -- ,484) ,462
After one year through 464,450 350 (638) 464,162
five years
After five years 507,275 -- (21,649) 485,626
through ten years
After ten years 1,010, - (56,14 954,
502 - 5) 357
2,184, (79,9 2,104,6
173 350 16) 07
U.S. Treasury debt
securities:
After ten years 873, - (53,38 820,
734 - 3) 351
U.S. government and
agency securities:
After ten years 125, - (16,72 109,
912 - 4) 188
$ 3,183 $ $(150,0 $3,034,
,819 350 23) 146
</TABLE>
3.Investment in Local Partnerships
The Partnership owns limited partnership interests in forty-three Local
Partnerships representing capital contributions in the aggregate
amount of $29,057,595, of which the Partnership has paid $27,955,268
and $1,102,327 are outstanding as of June 29, 1996. Such
outstanding capital contributions are reflected as restricted cash
in the accompanying balance sheet as of June 29, 1996. The
outstanding capital contributions are payable upon two Local
Partnerships' satisfaction of specified conditions related to
operations. As of March 31, 1996, the Local Partnerships have
outstanding mortgage and construction loans payable totaling
approximately $87,577,000 and accrued interest payable on such loans
totaling approximately $1,572,000, which are secured by security
interests and liens common to mortgage and construction loans on the
Local Partnerships' real property and other assets.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 29, 1996
(UNAUDITED)
3.Investment in Local Partnerships (continued)
For the three month period ended June 29, 1996, the Investment in
Local Partnerships activity consists of the following:
<TABLE>
<CAPTION>
<S> <C>
Investment in Local $ 13,241,594
Partnerships as of March 30,
1996
Equity in loss of Investment in
Local Partnerships for the (639,005)
three month period ended March (A)
31, 1996
Cash distributions received from
Local Partnerships during the (20,222)
three month period ended June
29, 1996
Investment in Local $ 12,582,367
Partnerships as of June 29,
1996
</TABLE>
(A)Equity in loss of Investment in Local Partnerships is limited
to the Partnership's investment balance in each Local
Partnership; any excess is applied to other partners' capital
in any such Local Partnership. The amount of such excess
losses applied to other partners' capital was $253,122 and
$27,709 for the three month periods ended March 31, 1996 and
1995, respectively, as reflected in the combined statements
of operations of the Local Partnerships reflected herein Note
3.
The combined unaudited balance sheets of the Local Partnerships
as of March 31, 1996 and December 31, 1995 and the combined
unaudited statements of operations of the Local Partnerships for
the three month periods ended March 31, 1996 and 1995 are
reflected on pages 9 and 10, respectively.
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT PROPERTIES III L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 29, 1996
(UNAUDITED)
3.Investment in Local Partnerships (continued)
The combined balance sheets of the Local Partnerships as of March 31,
1996 and December 31, 1995 are as follows:
1996 1995
<S> <C> <C>
ASSETS
Cash and other investments $ 1,230 $ 1,392,1
,827 46
Rental receivable 246,836 310,169
Capital contributions receivable 1,102,327 1,102,327
Escrow deposits and reserves 3,553,354 3,403,860
Land 3,964,692 3,964,692
Buildings and improvements (net of
accumulated depreciation of 95,389,606 96,409,439
$20,133,954 and $19,100,770)
Intangible assets (net of accumulated
amortization of $972,438 and 817,1 854,837
$948,812) 94
Other 904 747,9
,067 72
$107,208,9 $108,185,442
03
LIABILITIES AND PARTNERS' EQUITY
(DEFICIT)
Liabilities:
Accounts payable and accrued expenses $ 692 $ 608,5
,214 74
Due to related parties 5,174,199 5,272,266
Mortgage and construction loans 87,577,204 87,656,301
Notes payable 27,403 38,848
Accrued interest 1,571,844 1,524,375
Other 635, 584,4
429 08
95,678,2 95,684,772
93
Partners' equity (deficit):
American Tax Credit Properties III
L.P.:
Capital contributions, net of
distributions (includes receivable 28,896,233 28,908,501
of $1,102,327)
Cumulative loss (16,293,64 (15,654,639)
4)
12,602,5 13,253,862
89
General partners and other limited
partners, including ATCP II:
Capital contributions, net of 881,926 883,096
distributions
Cumulative loss (1,953,9 (1,636,288
05) )
(1,071,9 (753,19
79) 2)
11,530,6 12,500,670
10
$107,208,9 $108,185,442
03
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMERICAN TAX CREDIT PROPERTIES III L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 29, 1996
(UNAUDITED)
3.Investment in Local Partnerships (continued)
The combined statements of operations of the Local Partnerships
for the three month periods ended March 31, 1996 and 1995 are as
follows:
1996 1995
<S> <C> <C>
REVENUE
Rental $ 2,499,8 $ 2,461,674
29
Interest and other 78,4 65,291
65
Total Revenue 2,578,29 2,526,965
4
EXPENSES
Administrative 537,514 518,476
Utilities 330,687 280,967
Operating, maintenance and other 462,561 506,622
Taxes and insurance 317,122 286,833
Interest (including amortization of 853,8 872,352
$38,585 and $51,056) 48
Depreciation 1,033,1 1,036,579
84
Total Expenses 3,534,91 3,501,829
6
NET LOSS $ (956, $ (974,86
622) 4)
NET LOSS ATTRIBUTABLE TO
American Tax Credit Properties III $ (639, $ (875,35
L.P. 005) 1)
General partners and other limited
partners, including ATCP II, which
includes $253,122 and $27,709 of
American Tax Credit Properties III (317,6 (99,51
L.P. equity in loss in excess of 17) 3)
investment balance
$ (956, $ (974,86
622) 4)
</TABLE>
The combined results of operations of the Local Partnerships for
the three month period ended March 31, 1996 are not necessarily
indicative of the results that may be expected for an entire
operating period.
4.Additional Information
Additional information, including the audited March 30, 1996
Financial Statements and the Organization, Purpose and Summary
of Significant Accounting Policies, is included in the
Partnership's Annual Report on Form 10-K for the fiscal year
ended March 30, 1996 on file with the Securities and Exchange
Commission.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Material Changes in Financial Condition.
As of June 29, 1996, Registrant has not experienced a significant
change in financial condition as compared to March 30, 1996.
Principal changes in assets are comprised of quarterly periodic
transactions and adjustments and anticipated equity in loss from
operations of the Local Partnerships. During the three month
period ended June 29, 1996, Registrant received cash from
interest earnings and distributions from Local Partnerships and
utilized cash for normal operating expenses. During the three
month period ended June 29, 1996, Registrant recorded a net
unrealized loss on bonds available-for-sale of approximately
$55,000, resulting in a net unrealized loss of approximately
$150,000 reflected in Registrant's partners' equity (deficit) as
of June 29, 1996. In addition, during the three month period
ended June 29, 1996, Registrant recorded accretion of zero coupon
bonds of approximately $22,000, which was partially offset by
amortization of net premium on investments in bonds of
approximately $4,000, while restricted cash remained unchanged.
During the three month period ended June 29, 1996, the Investment
in Local Partnerships decreased as a result of Registrant's
equity in the Local Partnerships' net loss for the three month
period ended March 31, 1996 of $639,005 and by cash distributions
received from Local Partnerships of $20,222.
The Properties are principally comprised of subsidized and
leveraged low-income multifamily residential complexes located
throughout the United States and Puerto Rico. The rents of the
Properties, many of which receive rental subsidy payments,
including payments under Section 8 of Title II of the Housing and
Community Development Act of 1974 ("Section 8"), are subject to
specific laws, regulations and agreements with federal and state
agencies. The subsidy agreements expire at various times during
and after the Compliance Periods of the Local Partnerships.
Registrant cannot reasonably predict legislative initiatives and
governmental budget negotiations, the outcome of which could
result in a reduction in funds available for the various federal
and state administered housing programs including the Section 8
program. Such changes could adversely affect the future net
operating income and debt structure of any or all Local
Partnerships currently receiving such subsidy or similar
subsidies. In addition, the Local Partnerships have various
financing structures which include (i) required debt service
payments ("Mandatory Debt Service") and (ii) debt service
payments which are payable only from available cash flow subject
to the terms and conditions of the notes, which may be subject to
specific laws, regulations and agreements with appropriate
federal and state agencies ("Non-Mandatory Debt Service or
Interest"). In the event rents are not sufficient to cover
operating expenses, Mandatory Debt Service requirements and other
charges, the Local General Partners are obligated to provide
advances to cover deficits for a certain period of time up to
certain amounts (the "Deficit Guarantee"). A Local General
Partner's funding of such Deficit Guarantee is dependent on its
liquidity or ability to borrow the required funds. During the
three month period ended March 31, 1996, revenue from operations,
Deficit Guarantee advances and reserves of the Local Partnerships
have generally been sufficient to cover the operating expenses
and Mandatory Debt Service. Certain Local Partnerships are
effectively operating at or near break even levels, although such
Local Partnerships' accounting information reflects operating
deficits that do not represent cash deficits due to their
mortgage and financing structure and the required deferral of
property management fees. As discussed below, certain Local
Partnerships' operating information indicates below break even
operations after taking into account their mortgage and financing
structure and the required deferral of property management fees.
The terms of the partnership agreement of Justin Associates (the
"Justin Local Partnership") require the Local General Partners of
the Justin Local Partnership to advance funds to cover operating
deficits up to $266,000 through March, 1997 and to cause the
management agent to defer property management fees in order to
avoid a default under the mortgage. The Justin Local Partnership
incurred an operating deficit of approximately $9,000 for the
period ended March 31, 1996, which includes property management
fees of approximately $4,000. Accordingly, the net operating
deficit was approximately $5,000. As of March 31, 1996, the
Local General Partners have advanced approximately $21,000 under
their Deficit Guarantee obligation. Of Registrant's total annual
Low-income Tax Credits, approximately 6.44% is allocated from the
Justin Local Partnership.
The terms of the partnership agreement of Christian Street
Commons Associates (the "Christian Street Local Partnership")
require the Local General Partners of the Christian Street Local
Partnership to advance funds to cover operating deficits up to
$150,000 through 2008 and to cause the management agent to defer
property management fees in order to avoid a default under the
mortgage. The Christian Street Local Partnership incurred an
operating deficit of approximately $4,000 for the period ended
March 31, 1996, which includes property management fees of
approximately $1,000. Accordingly, the net operating deficit was
approximately $3,000. As of March 31, 1996, the Local General
Partner has advanced approximately $27,000 under its Deficit
Guarantee obligation. Of Registrant's total annual Low-income
Tax Credits, approximately 2.08% is allocated from the Christian
Street Local Partnership.
The Local General Partners of Sydney Engel Associates (the
"Sydney Engel Local Partnership") report that although the Sydney
Engel Local Partnership has not closed on its final mortgages
with certain agencies of the City of New York ("NYC"), it has
communicated with NYC that it is ready to close. The closing of
the mortgages has been delayed due to technical issues regarding
the structure of the loans and a guaranteed investment contract
to be purchased from the outstanding capital contribution due
from Registrant in the amount of approximately $1,018,000, which
will be paid upon completion of the final closing of the loans.
The Sydney Engel Local Partnership incurred an operating deficit
of approximately $31,000 for the three month period ended March
31, 1996, which includes property management fees of
approximately $25,000. Accordingly, the net operating deficit
was approximately $6,000. Of Registrant's total annual Low-
income Tax Credits, approximately 9.43% is allocated from the
Sydney Engel Local Partnership.
The terms of the partnership agreement of Carrington Limited
Dividend Housing Association Limited Partnership (the "Carrington
Local Partnership") require the Local General Partners of the
Carrington Local Partnership to cause the management agent to
defer property management fees in order to avoid a default under
the mortgage. The Carrington Local Partnership incurred an
operating deficit for the period ended March 31, 1996 of
approximately $25,000 which includes property management fees of
approximately $5,000. Accordingly, the net operating deficit was
approximately $20,000. The Local General Partners report that
the deficit is primarily the result of unscheduled repair and
maintenance expenses incurred during the period and that all
required payments under the mortgage and real estate taxes are
current. Of Registrant's total annual Low-income Tax Credits,
approximately 6.36% is allocated from the Carrington Local
Partnership.
Results of Operations.
Registrant's operating results are dependent upon the operating
results of the Local Partnerships and are significantly impacted
by the Local Partnerships' policies. Registrant accounts for its
Investment in Local Partnerships in accordance with the equity
method of accounting and Emerging Issues Task Force ("EITF")
Issue No. 94-1, "Accounting for Tax Benefits Resulting from
Investments in Affordable Housing Projects." Under the equity
method of accounting and in accordance with EITF Issue No. 94-1,
the investment is carried at cost which includes capital
contributions payable, and is adjusted for Registrant's share of
the Local Partnership's results of operations and by any cash
distributions received. Equity in loss of each Investment in
Local Partnership allocated to Registrant is recognized to the
extent of Registrant's investment balance in each Local
Partnership. Any equity in loss in excess of Registrant's
investment balance in a Local Partnership is allocated to other
partners' capital in each such Local Partnership. As a result,
the equity in loss of Investment in Local Partnerships is
expected to decrease as Registrant's investment balances in the
respective Local Partnerships become zero.
Cumulative losses and cash distributions in excess of Investment
in Local Partnerships may result from a variety of circumstances,
including a Local Partnership's accounting policies, subsidy
structure, debt structure and operating deficits, among other
things. Accordingly, cumulative losses and cash distributions in
excess of the investment are not necessarily indicative of
adverse operating results of a Local Partnership. See discussion
above under Material Changes in Financial Condition regarding
certain Local Partnerships currently operating below economic
break even levels.
Three Month Period Ended June 29, 1996.
For the three month period ended June 29, 1996, Registrant had a
net loss of approximately $692,000, which included an equity in
loss of Investment in Local Partnerships of approximately
$639,000 for the three month period ended March 31, 1996.
Registrant's loss from operations for the three month period
ended June 29, 1996 of approximately $53,000 was attributable to
interest revenue of approximately $78,000, exceeded by operating
expenses of approximately $131,000. Interest income for future
periods is expected to decline as investments in bonds mature and
are utilized for Registrant's operating expenses and Temporary
Investments are utilized to make payments of capital
contributions to Local Partnerships.
The Local Partnerships' net loss of approximately $957,000 for
the three month period ended March 31, 1996 was attributable to
rental and other revenue of approximately $2,578,000, exceeded by
operating and interest expenses (including Non-Mandatory
Interest) of approximately $2,463,000 and approximately
$1,072,000 of depreciation and amortization expenses.
Three Month Period Ended June 29, 1995.
For the three month period ended June 29, 1995, Registrant had a
net loss of approximately $918,000, which included an equity in
loss of Investment in Local Partnerships of approximately
$875,000 for the three month period ended March 31, 1995.
Registrant's loss from operations for the three month period
ended June 29, 1995 of approximately $43,000 was attributable to
interest revenue of approximately $95,000, exceeded by operating
expenses of approximately $135,000 and amortization of
organization costs of approximately $3,000.
The Local Partnerships' net loss of approximately $975,000 for
the three month period ended March 31, 1995 was attributable to
rental and other revenue of approximately $2,527,000, exceeded by
operating and interest expenses (including Non-Mandatory
Interest) of approximately $2,414,000 and approximately
$1,088,000 of depreciation and amortization expenses.
Three Month Period Ended June 29, 1996 versus
Three Month Period Ended June 29, 1995.
Registrant's operations for the three month period ended June 29,
1996 resulted in a net loss of approximately $692,000 as compared
to a net loss of approximately $918,000 for the same period in
1995. The decrease in net loss is primarily attributable to a
decrease in the equity in loss of Investment in Local
Partnerships of approximately $236,000, which is primarily the
result of an increase in the nonrecognition of losses in excess
of Registrant's investment in certain Local Partnerships of
approximately $225,000 in accordance with the equity method of
accounting, as discussed above.
<PAGE>
AMERICAN TAX CREDIT PROPERTIES III L.P.
Part II - OTHER INFORMATION.
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
None
Item 4. Submission of Matters to a Vote of Security Holders.
None
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K.
None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
AMERICAN TAX CREDIT PROPERTIES III
L.P.
(a Delaware limited partnership)
By: Richman Tax Credit Properties III
L.P.,
General Partner
by: Richman Housing Credits Inc.,
general partner
Dated: August 13, 1996 /s/ Richard Paul
Richman
Richard Paul Richman
President, Chief Executive
Officer and Director of the
general partner of the
General Partner
Dated: August 13, 1996 /s/ Neal
Ludeke
Neal Ludeke
Vice President and
Treasurer of the general partner
of the General Partner
(Principal Financial and
Accounting
Officer of Registrant)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial
information extracted from the quarter ended June 29,
1996 Form 10-Q Consolidated Balance Sheets and
Consolidated Statements of Operations as of June 29,
1996, and is qualified in its entirety by reference to
such financial statements.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-30-1996
<PERIOD-END> JUN-29-1996
<CASH> 1,477
<SECURITIES> 3,034
<RECEIVABLES> 40
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
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0
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